Wow! What a surprise! S&P downgraded the US economy for the first time in almost a century.
A news that has rocked the financial markets of the world. A news that has blown away 600 points from DOW. A news that has made half of the global financial markets volatile enough that these could be evaporated in thin air.
US has to admit that there is no escape from this financial crunch that has clutched their economy for the last 50 years or so. More than 90% in debt, and it still hopes to survive against all odds.
And guess who was effected the most by this downgrade?? The average US citizen.
It has almost no effect on the ruling class and the rich of the world's largest economy, because they are already outsourcing the US jobs to the outer and cheaper manufacturing hubs of the world to churn out more and more profits out of their invested money.
The biggest creditor of US debt, China, is also not interested in purchasing more US treasury bonds because of the economic crisis that has hit hard the American economy. The Chinese do not feel that their investments would be secure in the economic torn country.
As a matter of fact, the recession did not even hit China. How many jobs were lost in China after December 2007??? hardly half a million, and compare this number to the 1.3 billion population.